Vacancy solution for Vancouver? Tear down old rental buildings
More rentals needed: Vancouver’s rental market paradox — too many buildings, too few units
By Salma Nurmohamed, CBC News
In the rules of Vancouver real estate, there’s an unofficial 11th commandment when it comes to rental buildings, says analyst David Goodman.
“Thou shalt not tear down under any circumstances.”
And now, he says, is the time to break it.
David Goodman, a real estate marketer in Vancouver since the 1970’s, produces The Goodman Report into the rental market and rental buildings in the city. (David Goodman )
Vancouver’s chronically low vacancy rate — 0.6 per cent according to the City of Vancouver — means wild competition for any available rental scrap.
It’s depressing, but we’re desensitized. Stories about crowds of hopeful renters packing showings, many who come with deposit cheques in hand, seem to be old news.
It’s now so competitive the Tenant Resource and Advisory Centre is even offering a new course on how to market yourself to a potential landlord — how to dress, what to say, what insurance to buy, even how to make a ‘pet resumé.’
David Goodman, a well-known Vancouver real estate marketer since the 1970’s, who authors a quarterly report on the rental market, calls it a crisis. One that can only be solved, he argues, by ending a freeze on tearing down old rental buildings in the city of Vancouver.
Too few units, too much space
While many Vancouver renters live in privately owned condos or suites in houses, dedicated rental buildings are seen as offering long term security and better protection from rising rents.
It’s why there are growing calls from both sides of the political spectrum for city hall to re-think its policy on preserving existing rental stock — at all costs.
David Hutniak is the CEO of Landlord B.C. He says at least 80 per cent of the city’s rental buildings are low-rise, three storey walk-ups about a half a century old.
The vast majority of rental buildings in Vancouver were built half a century ago, when three stories was the norm and no one was concerned about maximizing density.
In fact, at least 80 per cent of purpose-built rental buildings in the city fall into that category, says David Hutniak, who as CEO ofLandlord B.C. represents many of those building owners.
“A lot of land that exists is sitting under three storey walk-ups, and there’s regulations preventing tearing them down.”
In other words, too many buildings with too few units are taking up too much space.
If they were torn down bigger buildings — with many more rental units — could replace them.
Read the full story here.